For the time being, there are no major movements in currencies, as markets remain relatively calm against the backdrop of continuing trade tensions between the US and China. There are still no news, except of course Beijing's counter-actions on Monday and the markets as a whole are perhaps in a process of analyzing the situation.
Despite retaining the slight remaining optimism, the Aussie is experiencing difficulties this week, compounded by China's negative economic data, which again disappointed the traders. This raises the question about China and the global economy, but local authorities quickly reacted, commenting on financial incentives that once again managed to support optimism.
However, the question remains, with so many measures taken to support the economy, and things do not seem to change. How long can authorities continue to calm the nerves of market participants?
No matter, the Australian was also a victim of worse-than-expected wages data earlier, and weekend election is coming, so we expect the currency to remain under pressure this week. At the same time, kiwi is also lagging behind for the same reasons around China.
The remainder of the market remains calm, with EUR/USD traded in a range of 10 pips and GBP/USD at 9. By this time, with volatility,
No matter, keep an eye on the yen and its crosses, because they have to be active, given the fact that the markets are mainly watching the trade front. There is hope to recover part of the risky assets, but we do not expect this to trigger a big risk-on rally until the tension goes away.
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